French engineering group Areva has furthered its technical and geographical base through the acquisition of a majority stake in Koblitz, a Brazilian developer of renewable energy projects.
Areva has bought a 70 per cent stake in Koblitz, whose core business is the supply of turnkey services for the construction of biomass and small hydropower projects.
The acquisition is in line with Areva’s drive to increase activities in the “CO2-free” energy market. It will allow the company to expand its base in Brazil, which has a large and growing renewable energy sector.
Renewable energy – including large-scale hydropower – accounts for 90 per cent of electricity demand in Brazil and the use of sugarcane bagasse is expected to grow by 50 per cent over the next five years.
Since 1996, Koblitz has participated in 76 biomass projects, including 58 using sugarcane bagasse.
Areva will provide Koblitz with project management and engineering, procurement and construction skills for the building of turnkey power plants. Koblitz will also benefit from Areva’s financial support.
Bertrand Durrande, Executive Vice President of Areva’s Renewable Energies Business said, “this acquisition is a significant step for our biomass activities. After the 2007 acquisition of Multibrid, it confirms the will of the group to build up a renewable industrial division.”
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